Abstract: This study analyses the real impact of MGNREGA in the state of Tamil Nadu, India in terms of financial inclusion of the rural poor, particularly women, SC and ST populations through employment generation. It examines the level of migration after implementation of MGNREGA, participation of skilled labourers in unskilled work, the difference among agricultural, non-agricultural and MGNREGA wages, and the awareness of provisions in MGNREGA by the stakeholders. The study finds that financial inclusion has taken place in the study area. The study also finds that migration has been reduced and the levels of agricultural wages have gone up after the introduction of MGNREGA in the study area. Most importantly, women have been empowered by bargaining power in terms of wage rate.